Updated as of September 2005

On Track for Sustained Recovery.

Total domestic production by the Japanese electronics industry in 2004 amounted to 19,845 billion yen or $187 billion, up slightly by 2.8 percent from 2003, but down 24 percent from 2000. (Exchange rate: $1= 106 yen, as of April 20, 2005)

There are 3 product categories in the Japanese electronics industry: consumer electronics, industrial electronics equipment, and electronic components and devices.

The value of consumer electronics shipped in 2004 was 2,524 billion yen up 9.1 percent from 2003. Over the past decade, a major part of production -- conventional products such as color TVs and audio/video equipment -- has drastically declined. This has been due to a surge in imports, while a major part of overseas demand is now supplied by Japanese transplants in respective major overseas markets.

Recently, the consumer electronics market in Japan has seen growing demand for digitalized visual/audio products, such as high definition flat-screen TVs with plasma or liquid crystal displays and DVD recorders. The so-called "iPod” launched by Apple and adopted by Japanese industry revolutionized the music media and the distribution industry, marking a new phase in the online music market targeted at a new generation.

Furthermore, in this rapidly changing digital age, the convergence of the personal computer, digital AV technologies and telecommunication technology is creating a home entertainment/appliance equipment-networking market. To realize this, consumer electronics companies are in the process of cross breeding with other sectors in the fields of interface technology and software development through cross licensing, strategic alliances, and /or joint ventures.

The value of industrial electronics equipment shipped in 2004 was 7,542 billion yen, down 3.3 percent from 2003, continuing a trend that has seen a 38.4 percent decrease since 2000.

The value of electronic components and devices shipped in 2004 was 9,779 billion yen, an increase of 6.5 percent from 2003, this accounted for 49.3 percent of the overall electronic products shipped for the Japanese electronics industry. Among various products in this category, production of liquid crystal devices (LCDs) continued to grow strongly, showing a 23.7 percent increase to reach 1,799 billion yen in 2003 from 1,454 billion yen in 2000. This trend reflects a strong demand for notebook-sized PCs.

Japan's total electronics exports in 2004 amounted to 13,754 billion yen or $130 billion, up 2.8 percent from 2003, after maintaining about the same level over the previous five years. Exports of consumer electronics have been increasing constantly since 2001, while local production has also been steadily rising.

Japan's total electronics imports in 2004 amounted to 7,840 billion yen or $74 billion, an increase of 10.6 percent over 2003. Imports of electronic components and devices in 2004 have increased significantly to 4,548 billion yen or $43 billion -- up 12.6 percent from 4,040 billion yen in 2003. The value of imported Industrial electronic equipment was 2,557 billion yen or $24 billion, followed by the import of consumer electronic products amounting to 734 billion yen or $6.9 billion.

It is evident that some recovery for Japan’s electronics industry, which has been depressed for a decade since the bubble economy burst in the 1990s, is taking place.